Myth: Having Pan card makes it compulsory to file returns: Benefits of Filing Income Tax return

Statement that “Filing of Income Tax is compulsory for all PAN CARD Holder” is False. Having PAN card does not make it compulsory to file returns. If income is taxable in a particular year, then you need to file return. However if income is below taxable limits, you can still have a PAN card and not file return. PAN card can be used as a photo identity proof and when required for filing income tax returns.

Benefits of Filing Income Tax return

• For getting any loan (Home Loan, Personal Loan, Vehicle Loan, Mortgage Loan .i.e Loan against property) from finance company you will be required to submit Income Tax Return copy for Minimum 2 Years and difference between filing of the two Income Return must be more than 6 months.
• Some Employers ask the their new employee to submit their last income tax return as  a proof of last job and salary they received from previous employer.
• For claiming income tax refund for TDS deducted, one has to file Income Tax return.
• Tax paid income tax return can be used for passport application.
• Service Tax Department or other Government Department can ask the Income Tax Return copy to verify your claim for sales or turnover.
• Last Important ITR act as proof of your income and how you have earned that income, in case of any notice from income tax department.

INCOME TAX SLABS RATES

The following Income Tax Rates are applicable for the Financial Year 2013-14 i.e. A/Y 2014-15 and FY 2014-15 .i.e. AY 2015-16  Education Cess @ 2% and SHEC @ 1% shall be levied on the Tax computed using the Income Tax Rates given below while filing the Income Tax Return. No Surcharge is applicable in case of Individuals and HUF’s.

1. For Male and Female Individuals below 60 years of age & HUF

2.For all Senior Citizens above 60 years of Age

3. For all Senior Citizens above 80 Years of Age